STOCKHOLM, Feb 02, 2017 /PRNewswire/ --
Third quarter (1 October - 31 December 2016)
- Net sales increased by 16 percent and amounted to SEK 1,819 million (1,570).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 39 percent and amounted to SEK 160 million (117) corresponding to an EBITA-margin of 8.8 percent (7.4).
- Operating profit increased by 45 percent and amounted to SEK 132 million (92) corresponding to an operating margin of 7.3 percent (5.8).
- Profit after tax increased by 38 percent and amounted to SEK 98 million (71).
- Earnings per share before dilution amounted to SEK 1.40 (1.05). For the 12-month period, earnings per share before dilution amounted to SEK 6.05 (4.90).
The period (1 April - 31 December 2016)
- Net sales increased by 16 percent and amounted to SEK 5,237 million (4,524).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 33 percent and amounted to SEK 522 million (394) corresponding to an EBITA-margin of 10.0 percent (8.7).
- Operating profit increased by 35 percent and amounted to SEK 441 million (326) corresponding to an operating margin of 8.4 percent (7.2).
- Profit after tax increased by 34 percent and amounted to SEK 332 million (248).
- Earnings per share before dilution amounted to SEK 4.85 (3.65).
- Return on working capital (P/WC) amounted to 50 percent and return on equity amounted to 26 percent (26).
- The equity ratio amounted to 39 percent (35).
- Cash flow from operating activities amounted to SEK 391 million (329). For the 12-month period, cash flow per share amounted to SEK 8.00 (7.50).
- Since the start of the financial year we have completed nine acquisitions, of which two after the end of the period, with total annual sales of about SEK 480 million.
Increased sales and strong profit growth during the third quarter
Addtech enjoyed good demand during the third quarter, and the economic situation in the markets where we operate has stabilised. We continued to grow in all our four business areas, through both good organic growth and contribution from implemented acquisitions. Increased sales of our products and solutions combined with successful efficiency improvements enabled continued strong growth in profits and an improved operating margin compared to the previous year. In the third quarter, sales increased by 16 percent and EBITA increased by 39 percent.
Demand for production components from Nordic manufacturing companies increased on the whole during the quarter, but the business situation continues to differ between customer segments. Demand from machinery manufacturers, the engineering industry and medical technology was relatively stable, while it grew in customer segments such as special vehicles, electronics and transport. The market situation remained weak in oil and gas and weakened somewhat in telecom and wind power. From an overall perspective, the business climate for production components in our markets outside the Nordics was positive. Sales of products to industrial aftermarket customers in the Nordics have generally been stable. Demand from customers within infrastructure such as electricity transmission and electricity distribution remained at the same level as in the previous year. Business remained positive for electricity-related products in building and installation.
We continually evaluate acquisitions of both independent profitable technology companies with market-leading niche positions and smaller bolt-on acquisitions that can strengthen market positions and profitability in our existing companies. Since the start of the financial year we have completed nine acquisitions, two of which after the end of the quarter. Of these, six were independent companies and three were bolt-on acquisitions. In all, the acquisitions contribute with annual sales of about SEK 480 million and add 126 employees to the Group. Two of the acquisitions were made in Sweden, two in Finland and one each in Norway, Denmark, the UK, China and the US. With a good cash flow and strong balance sheet, we have favourable opportunities to carry out additional interesting acquisitions.
President and CEO
The Year-end report for the period 1 April 2016 – 31 March 2017 will be published on 11 May 2017
For further information, please contact:
CEO and President,
This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 11.30 a.m CET on 2 February 2017.
Addtech in brief
Addtech is a technology trading group that provides technological and economic value added in the link between manufacturers and customers. Addtech operates in selected niches in the market for advanced technology products and solutions. Its customers primarily operate in the manufacturing industry and infrastructure. Addtech has about 2 000 employees in approximately 120 subsidiaries that operate under their own brands. The Group has annual sales of about SEK 7 billion. Addtech is listed on the Nasdaq Stockholm.
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